GBP/USD flirts with the 1.12 level. In the view of analysts at ING, the pair could slump to the bottom of the 1.10-1.15 range.

The UK is struggling to regain lost credibility

“Political infighting and the uncertainty of policy continue to demand a risk premium for sterling, where GBP/USD could easily slip back to the bottom end of its wide 1.10-1.15 range.”

“The wild card is what happens to the top job and whether the re-emergence of former Chancellor Rishi Sunak would represent a steadying of the ship or merely split the Conservative party asunder. One can understand why foreign investors will want to steer clear of sterling until the political environment becomes a lot clearer.”